Cryptocurrencies
Small Group of Insiders Is Reaping Most of the Gains on NFTs, Study Shows
- Chainalysis report says early access via ‘whitelist’ helps
- Highly sophisticated investors get most of NFT profits: study
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Non-fungible tokens are one of the hottest things in cryptocurrencies right now, with the prospect of big gains should the latest collection rise in value. But a new study from Chainalysis shows that a small portion of participants reap most of the gains.
Investing frequently in a wide array of collections appears to lead to the highest profits, Chainalysis said in its report. It added that whitelisting -- the practice of allowing a certain set of followers or others to purchase new NFTs at a much lower price than other users during minting events where a digital file is turned into a digital asset on a blockchain-- helps those people significantly.